Market Wrap

Indian equities struggled to sustain early gains on Thursday as selling pressure quickly erased a nearly 70-point opening rise in the Nifty. The index opened at 24,278 on positive global cues following Nvidia’s strong earnings, but slipped steadily through the session to close at 24,090.85, near the day’s low.

The weakness was broad-based, with HDFC Bank emerging as a key drag amid reports of a US class-action lawsuit and renewed uncertainty over CEO Sashidhar Jagdishan’s tenure. The stock’s sharp decline weighed heavily on the benchmark and reinforced a cautious tone across the market.

Global cues were otherwise supportive. Nvidia reported Q2 revenue of $96.2 billion and guided for Q3 revenue of $108 billion, reinforcing expectations of continued strength in the global AI investment cycle. Softer crude prices also offered some relief to India, with hopes of progress in Iran-Oman talks over the Strait of Hormuz helping ease concerns over energy supply disruptions.

What's Ahead

The focus on Friday will be on whether the Nifty can stabilize around the 24,100 zone or whether selling pressure extends further. Nvidia-led strength in technology and semiconductor stocks could provide support, while elevated US bond yields, geopolitical developments and crude-price movements remain key global risks.

Domestically, HDFC Bank will remain a major swing factor for the index. The broader market is likely to stay highly stock-specific, with investors watching whether lower levels attract fresh buying or instead trigger another round of profit-booking.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its decline for the second consecutive session, falling 116.90 points (-0.48%) to close at 24,090.85, near the day’s low, reflecting persistent selling pressure and cautious sentiment amid expiry-led volatility and geopolitical uncertainty. The index remained below the 24,231 resistance zone, while the RSI slipped below 50, signalling weakening momentum. The immediate technical setup remains cautious, with support at 23,950 and 23,863, while a recovery above 24,231 and 24,318 would be required to improve the short-term outlook.

BankNifty

The NIFTY BANK declined 273.80 points (-0.47%) to 57,509.95, surrendering its early gains and closing near the session low. Weakness in HDFCBANK and other banking heavyweights kept the index under pressure, although the RSI around 50 indicates broadly neutral momentum rather than an outright bearish trend. The index faces immediate resistance at 57,749 and 57,897, while 57,271 and 57,123 remain the key support levels. A sustained move above resistance could revive buying interest, whereas a break below 57,271 may reinforce downside pressure.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index slipped 106.10 points (-0.40%) to close at 26,280.65, extending its weakness amid selling across several financial heavyweights. The index remains positioned between its near-term support and resistance zones, suggesting a consolidation phase with a mildly negative bias. Support is placed at 26,135 and 26,044, while 26,427 and 26,517 are the key resistance levels. A sustained move above 26,517 would improve the technical setup, while a break below 26,044 could open the way for further weakness.

Sensex

The BSE SENSEX fell 539.35 points (-0.70%) to close at 76,933.59, with broad-based selling reflected in the weak market breadth of 5 advancing stocks against 24 declining stocks. The index closed closer to the lower end of the session and remains under short-term pressure. Immediate support is seen at 76,496 and 76,225, while 77,371 and 77,642 represent the key resistance levels. The near-term bias remains cautious, and a sustained move above 77,642 would be needed to signal a meaningful improvement in momentum.